Television commercials make it seem that the most important factor in choosing insurance is how low the premium is. Competition is fierce among insurers to get your business. You can save $400 a year; you can have a deduction if you put a monitor on your car; you can get cash back, or our insurance is much lower than everybody else’s.
The truth of the matter is that the value of the insurance company is not what it costs, but how well they protect you in the event of an injury. More and more, insurance companies are denying responsibility even in the most obvious cases. The knee jerk is to deny your claim, and a little thought can shed light on the reason.
Insurance companies are among the larger corporations, and they tend to be very rich because they charge more for insurance than they pay out on claims. Their business is to make money. It seems that the standard practice is to automatically deny claims, either in the hopes that the insured will not pursue the action, or to discourage their insureds from filing suit.
It is important to have good insurance, against the day when you really need it. However, it is nearly impossible to get a meaningful settlement from an insurance company without having an attorney to run interference.